As you may suspect, working from home does increase household electricity use. But less expected is that the biggest reason isn’t your laptop or monitor. It’s the heating and cooling that kicks in when your home is occupied all day instead of sitting empty while you’re at the office.
Since 2020, several studies have looked at this trend. The results are clear: working remotely leads to higher residential electricity use, sometimes by a lot, depending on your location and home setup.
We’ll explain what the research says, how much extra electricity remote work usually adds, and how to pick an electricity plan that fits a work-from-home lifestyle.
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What the Research Says About Remote Work and Home Electricity Use
The most detailed data on this question comes from electricity usage studies conducted during and after the pandemic. Two lines of research stand out: one focused on U.S. utility data, and another on how climate and home setup shape the results.
NBER Findings: Residential Electricity Rose as Work Shifted Home
Economist Steve Cicala analyzed U.S. electricity data during the pandemic in part to answer the question, “Does working from home increase electricity use?” His findings were published through the National Bureau of Economic Research in a widely cited study.
He concluded that residential electricity consumption rose by about 10% in the second quarter of 2020, while commercial usage dropped by 12% and industrial usage fell by 14%.
Smart meter data from Texas showed the shift in more detail. Weekday electricity use during work hours jumped roughly 16%, and weekday usage patterns started to look like weekends; a sign that people were home around the clock.
The later journal version of the study, covering Q2 through Q4 of 2020, found a 7.9% average increase in residential electricity nationwide. Over that period, U.S. households spent an estimated $13 billion more on electricity than they would have otherwise.
Newer Studies: Home Energy Use Depends on Heating, Cooling, and Work Setup
Research after the pandemic has added more detail. The International Energy Agency studied how working from home affects energy use in different regions and climates, and found that heating and cooling are the main factors.
In colder places like the U.K. and northern Europe, home heating is the main reason for higher energy use, especially in houses with older systems that heat the whole home instead of just one room. In warmer areas, air conditioning has the same effect.
Why Working From Home Often Raises Electricity Bills
Understanding where the extra electricity goes can help you figure out which costs are avoidable and which ones are built into your daily routine.
HVAC Matters More Than Your Laptop
A laptop used for eight hours a day uses about 30 to 75 kWh per year, which only adds a few dollars to your yearly electric bill. If you use a desktop computer with a monitor, energy use goes up to around 200 kWh per year, costing about $25 to $35 more each year at average U.S. rates.
HVAC is a different matter. Heating or cooling your whole home during work hours, when it would normally be empty, is responsible for most of the increase in electricity use.
In hot-climate states, running air conditioning from 8 a.m. to 6 p.m., five days a week, can meaningfully increase summer bills. In cold climates, electric heating or heat pump usage during the day has a similar effect.
Climate, Home Size, and Occupancy Patterns Change the Math
A remote worker in Phoenix or Houston will likely see a bigger summer electricity jump than someone in San Francisco or Portland. Similarly, heating a 2,500-square-foot house in Minnesota all day costs more than keeping a 700-square-foot apartment warm in the same city.
Occupancy patterns matter too. If your household already had someone home during the day (a stay-at-home parent, for example) the HVAC was already running. Adding one more remote worker to that home may not make as big a difference.
Does Remote Work Increase Energy Consumption Overall or Just Shift It?
A higher remote work electricity bill doesn’t tell the full story. When you account for commuting, office operations, and building efficiency, the net energy picture gets more complicated. In some cases, remote work utility costs are lower overall. In others, it just moves the consumption from one place to another.
Less Commuting Can Lower Transport Energy
The clearest energy benefit of remote work is the commute that doesn’t happen. For many workers, transportation is their single largest source of daily emissions. But no driving means no fuel burned.
A 2023 study published in the Proceedings of the National Academy of Sciences by researchers at Cornell and Microsoft found that hybrid workers (those working from home two to four days per week) reduced their greenhouse gas emissions by 11% to 29% compared to fully in-office workers. Fully remote workers cut emissions by up to 54%.
However, working from home just one day per week showed almost no measurable benefit, partly because people tend to offset the saved commute with other car trips.
A separate systematic review of 39 empirical studies found that 26 reported net energy savings in telework electricity consumption, with the reductions driven primarily by fewer miles driven.
Hybrid Work Can Create Overlap Between Office and Home Energy Use
Hybrid arrangements introduce a less obvious problem: the office doesn’t power down when half its workers stay home. HVAC systems, lighting, elevators, and servers tend to run at the same level regardless of occupancy. The result is that per-person energy use in the building goes up when fewer people are there.
Depending on the setup, such as how much of the home is heated or cooled and how efficiently the office operates, hybrid work energy impacts can result in total emissions that are 3% lower to 17% higher than with full-time office work. The net outcome largely depends on whether employers scale down their office footprint to match actual attendance.
How Much Extra Electricity Does Working From Home Use?
The dollar impact varies quite a bit based on location, climate, and what equipment you’re running. Here’s what the data suggests.
What Studies Estimate in the U.S. and Abroad
The average U.S. household uses about 10,500 kWh of electricity per year, according to the most recent EIA data. Remote work typically adds somewhere between $10 and $50 per month to a household’s electric bill, depending on local rates, climate, and setup.
On the lower end: a remote worker in a mild climate using a laptop in an already occupied home might barely notice any difference in their electricity consumption. On the higher end: a solo remote worker in Houston or Phoenix running central air conditioning through the summer could see a noticeable jump; potentially $50 per month or more during peak cooling season.
Located in Houston? Explore Just Energy Houston electricity rates.
When the Increase Is Modest vs. Significant
The increase in home electricity use tends to be modest when you live in a mild climate, work on a laptop, have an energy-efficient home, or share the house with someone who was already home during the day.
Electricity use can be more significant when you live in a hot or cold climate, heat or cool a large home, use a desktop with multiple monitors, or add extra lighting and appliances to a dedicated home office.
A Remote Working-Friendly Electricity Plan
If your electricity use has gone up because of remote work, the energy plan you’re on may no longer be the best fit. A plan designed around daytime occupancy and predictable load can help keep costs in check.
Best-Fit Pricing Model for Daytime Occupancy
Fixed-rate plans charge the same price per kWh regardless of when you use electricity. For remote workers who are home and using power throughout the day, this means no penalty for daytime consumption and a predictable monthly bill.
Time-of-use (TOU) plans charge different rates depending on the hour of the day. Off-peak hours are cheaper, but daytime rates (when most remote workers are active) can be higher. TOU plans can save you 15% to 30% if you shift heavy loads like laundry or dishwashing to evenings or early mornings. Some providers also offer plans with free daytime windows, which can work well for consistent midday usage.
Just Energy has a Free Days electricity plan that offers 7 hours of free electricity every day. If you do notice that you’re energy consumption has increase with remote work, this might be an option to consider. Ultimately, the right fit depends on your schedule flexibility and how much of your usage you can realistically move off-peak.
Features, Protections, and Add-Ons Remote Workers Need
Beyond pricing structure, a few plan features are worth looking for:
- Budget billing or bill protection to smooth out seasonal swings
- Usage tracking tools that show how your consumption has changed
- No hidden demand charges
- Renewable energy options like solar credits or green energy plans
- Contract term flexibility in case your work arrangement changes
Questions to Ask Before Changing Energy Plans
Before committing to a new plan, a few questions can help narrow the choice:
- What hours do you use the most electricity?
- Can you shift laundry, cooking, or EV charging to off-peak times?
- What’s the contract length, and what does early cancellation cost?
- Does the plan include usage alerts or seasonal rate changes?
Plans With Perks
Enjoy free nights or weekends and earn bill credits, making your electricity plan work for you.
Remote Work and Energy Use FAQs
The average U.S. household uses about 10,500 kWh per year, or roughly 865 kWh per month, according to the latest EIA data. Usage varies widely by state and climate.
HVAC systems are the largest electricity draw in most homes, followed by water heaters, large appliances such as refrigerators and dryers, and lighting.
Use a laptop instead of a desktop, keep your thermostat a few degrees higher in summer or lower in winter, and run heavy appliances during off-peak hours if you’re on a time-of-use plan.
Managing Your Electricity as a Remote Worker
So, does working from home increase electricity use? In most cases, yes. The main driver is HVAC, which keeps your home heated or cooled during the hours it would otherwise be empty. The cost depends on your climate, home size, and setup.
At the same time, reduced commuting can offset some or all of the increase in total energy level. Choosing an electricity plan that matches your daytime usage pattern is one of the most practical ways to manage the added cost.
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